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Financial literacy and low-income families

I don't think there is any doubt that financial literacy matters more than before. The traditional paternalism of society's major institutions, from business to government to education, has crumbled. Individuals need to learn more about money and finance because they have more responsibility.

That said, I think there are two universes of financial literacy. One is for middle-class families and workers. Financial literacy largely means understanding the basics of owning a home vs. renting, a fixed-rate mortgage compared to an adjustable-rate mortgage, asset allocation and diversification with retirement savings, the difference between term and whole life insurance, a Roth IRA, a traditional IRA, a 529 college savings plan and so on.  

Financial literacy for low-income families is very different: I have some thoughts about financial literacy for low-income families in a commentary for Marketplace Money. Low-income families don't have money to waste. Financial literacy is all about reducing that cost. Think debt, precautionary savings, and most importantly, public benefits.

Here are some additional resources:

About the author

Chris Farrell is the economics editor of Marketplace Money.
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To my mind, it's not so important how much money you earn,in the conditions of today life we have to be financially literate.We can see how many people have problems one or another way connected with money, wealthy people earn money and can not stop spending, low-income people can not stop saving and making debts.Really, now we have more responsibility and more opportunities to save money, because there's enough sales, discounts and profitable offers in the market now, but, once again, people should be financially literate to use it all in a right way, to learn how they can take an advantage from their purchases.Yes, financial literacy is different for people with different income,but everyone should know at least the basics of it.
http://britainloans.co.uk/payday-loan-lenders.html

Investment program directors offers literacy and investment related dinners where organizers arranges the speakers to make lead discussions on different topics. Actually the goal of the investment programs is to rise the financial and investment literacy within the community.
http://www.guidetoinvest.net/articles/investment-banking

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